x

Start investing with a
free Kristal.AI account.

icon

Simple. Secure.

*Error message
X

Accredited Investor

An Accredited Investor is an individual:

1. Whose net personal assets exceed in value SGD 2 million (or it's equivalent in a foreign currency) with value of his/her primary residence capped at SGD 1 million, or

2. Whose financial assets (net of any related liabilities) exceed in value SGD 1 million (or it's equivalent in a foreign currency), or

3. Whose income in the preceding 12 months is not less than SGD 300,000 (or it's equivalent in a foreign currency)

X

Kristal Freedom Account Fees and Charges

If account value is less than USD 50,000 -

NIL (if 25 or less client-initiated trade per calendar year; every SIP initiation is considered as 1 buy), else Custody and Asset Operating Fees at actuals charged to the Account by the Partner broker (i.e. Saxo Capital Markets).

If account value is more than USD 50,000 -

0.3% of account value charge is applicable, computed monthly on calendar month-end account value, charged quarterly and Custody and Asset Operating Fees at actuals charged to the Account by the Partner broker (i.e. Saxo Capital Markets).

Kristal Freedom Account Fund Movement Fee

Fee Item Kristal Freedom Account
Funds Deposit
USD Upto USD 25
SGD NIL
HKD NIL
AUD Upto USD 250
EUR Upto USD 250
GBP Upto USD 250
Deposit Threshold NIL (USD 1000 recommended)
Funds Withdrawal
USD Upto USD 50
SGD NIL
HKD NIL

FX Conversion

Where required shall be executed at 0.05% from the Market Rate. The Market Rate available to Kristal.AI is the Rate made available by the relevant brokers.

Note -

If Sender indicates Sender charges = 0, sending cost will be deducted (in addition to the above) by the receiving bank and paid back to the Sending bank and/or its Correspondent bank as applicable.

Additional charges levied by Clients’ bank may apply on transfers and FX conversions done in Clients’ bank account.

X

Kristal Private Wealth Account Fees and Charges

Non Fund Kristal account value if less than USD 50,000 -

Custody and Brokerage at actuals, charged to the Account by the Broker (i.e. Saxo Capital, Interactive Brokers).

Non Fund Kristal Account value if greater than USD 50,000 -

- 0.30%p.a. of A/C value > US $50,000, computed MONTHLY on calendar month-end account value, charged QUARTERLY.

- Custody and Brokerage at actuals, charged to the Account by the Broker (i.e. Saxo Capital, Interactive Brokers).

Fund Kristal fee in accordance with Factsheet.

Fee Item Kristal Private Wealth Account
Funds Deposit
USD Upto USD 50
SGD NIL
HKD N/A
AUD Upto USD 250
EUR Upto USD 250
GBP Upto USD 250
Deposit Threshold NIL (USD 25000 recommended)
Funds Withdrawal
USD Upto USD 50
SGD NIL
HKD NIL

FX Conversion

Where required shall be executed at 0.05% from the Market Rate. The Market Rate available to Kristal.AI is the Rate made available by the relevant brokers.

Note -

If Sender indicates Sender charges = 0, sending cost will be deducted (in addition to the above) by the receiving bank and paid back to the Sending bank and/or its Correspondent bank as applicable.

Additional charges levied by Clients’ bank may apply on transfers and FX conversions done in Clients’ bank account.

Kristal Managed Investment Account Fees and Charges

Fixed Income account value is equal to or greater than 80% of Total account value -

0.20%p.a. of Total account value, computed MONTHLY on calendar month-end Total account value, charged QUARTERLY.

Fixed Income account value is less than 80% of Total account value -

0.50%p.a. of Total account value, charged QUARTERLY, computed MONTHLY on calendar month-end Total account value.

Brokerage Account operating and maintenance charges ADDITIONAL in accordance with your Agreement with Broker.

Money transfer and FX conversion charges in accordance with your agreement with Broker.

DISCLAIMER

This is offered only to Accredited and Institutional Investors as defined under the Securities and Futures Act, Chapter 289 of Singapore (“Act”), which broadly comprises of regulated financial institutions, large corporates, high net worth individuals and sophisticated investors.

By clicking “Proceed”, you confirm that you are an Accredited/Institutional Investor as defined under the Act and you agree to the Terms of Use for this website.

EXIT PROCEED

Investing 1015 Mins Read

Risk Return Trade Off: Understanding Risk in Investments

Risk Return Trade Off. One steers clear of risks in daily life and would want to do the same when it comes to investments. But is risk really that bad? Learn more.

Risk.

The very term itself implies negativity. One steers clear of risks in daily life and would want to do the same when it comes to investments. After all, the thought of losing your hard-earned money can keep you up all night with terrifying nightmares.

However, is the risk really that bad when it comes to the world of investments? Though you may think the answer is a resounding yes, it is actually more nuanced than that. This is because of a concept known as risk return trade off. In this article, we will tell you all about the same.

What is the Risk Return Trade Off?

When a fund is associated with high risk, the expectation is that the returns will also be high. Similarly, when a fund is associated with low risk, investors can expect lower returns. The choice that an investor makes in with regards to the risk they want to take versus the returns they want to gain is known as the risk return trade off. It is what helps investors to take an investment decision whether they are willing to take a high risk with a greater return, or whether they are happy with lower returns that come with safety. Each investor has their own risk appetite, which is why the risk-return trade-off varies with each person.

Making Your Peace With the Risk and Return Trade Off

There are many factors that impact an investor’s risk return tradeoff. The first, of course, is the investor’s risk appetite (as mentioned earlier). If an investor does not fear risk and can whether the ups and downs of the market with a greater goal in mind, then that person has a high risk appetite. However, if an investor is more likely to panic every time the market dips, and prefers a sense of security over high returns, then that person has a low risk appetite.

Apart from this, investors must also consider their end goals when it comes to making specific investments. If an investor is looking for goal-based investments, then it makes sense to lower your risk exposure. When you have a milestone that you want to achieve in a set number of years, you can choose funds that offer an appropriate range of growth and invest accordingly. The question of taking risks is minimised here as one needs to achieve a specific goal. On the other hand, investors looking for wealth building can afford to take more risks as the goal is to grow one’s wealth as much as possible.

Investors must also consider how far they are from their retirement years. The further away that you are, the more likely it is that you can take risks without facing too many repercussions when it comes to retirement and your lifestyle after you stop earning. However, an investor in his/her 50s must be more cautious as the retirement years are just above the horizon and it is essential to be able to have financial independence at this time.

Finally, investors also have to consider their own finances while deciding their risk return trade off. If you believe that you can financially recover from a potential hit, then you can allow yourself to take certain risks while investing. However, let’s say you are a young investor who has just begun their career. At this stage, you may not be able to recover from a financial blow as your earnings are quite limited. Sticking to a low-risk fund can help you accumulate some wealth over time, without giving you an anxiety attack!

Singular Risk and Portfolio Risk: Must Your Risk Levels Stay Constant?

As an investor or a potential one, you can invest in a single entity and then build your portfolio over time. Now, when investing in a single entity (like a mutual fund), you can choose your level of risk. However, your overall risk levels can be quite different when it comes to the entire portfolio. Let us explain with an example.

Ann Young is in her 20s and want’s to invest in a mutual fund for 7 years. She selects a fund that puts most of her money in the debt fund market and is satisfied with having lower returns. However, a few years down the line, she decides that she needs to diversify her portfolio and invests in penny stocks, which are high risk, high returns investments.

At this point, one can say that her portfolio is fairly balanced, as she has both, high-risk investments and low-risk investments. However, when she adds onto her portfolio with other investments, she can still choose to be a high-risk taker or a moderate one and isn’t bound to the decisions of her past.

Investors can consider different levels of risk with every single investment that they make. In fact, this is generally advised as it allows investors to enjoy high ROIs and steady ones as well. Even if one investment fails, the security of the low-risk ones should keep the investor afloat through that. The goal is to always have some sort of a safety net that safeguards you from risk. As long as you can do that, you may find that taking risks becomes a much easier choice.

Of course, investors can enjoy a long and fruitful investment journey even without taking any risks throughout their lives. While it is not a necessity, it is also not the evil that many make it out to be! 

If you are wondering whether or not you should take high risks while investing, consider your goals, and the factors we have listed above before making the decision. Also, do understand the different types of investment options you have so that you can make more astute decisions regarding the growth of your funds and the risk that you want to take. Speaking to professionals should also help you understand which funds are the most apt for your needs. So, start defining the same before you pick your funds!

Disclaimer

The materials and data contained herein are for information only and shall in no event be construed as an offer to purchase or sell or the solicitation of an offer to purchase or sell any securities in any jurisdiction. Kristal Advisors does not make any representation, undertaking, warranty or guarantee as to the update, completeness, correctness, reliability or accuracy of the materials and data herein. All opinions, forecasts or estimation expressed herein are subject to change without prior notice. Kristal Advisors and its affiliates accept no liability or responsibility whatsoever for any direct or consequential loss and/or damages arising out of or in relation to any use of opinions, forecasts, materials and data contained herein or otherwise arising in connection therewith.

Post tagged under

risk risk vs returns

Other stories you might like

cross
Change your country to India?

You’re now visiting Kristal.AI Worldwide.
To explore diverse offerings in Indian and global products, select India as your country.

ind

India

hkg

Hong Kong

sgp

Singapore

global

Other
Disclaimer

This is offered only to Accredited and Institutional Investors as defined under the Securities and Futures Act, Chapter 289 of Singapore (“Act”), which broadly comprises of regulated financial institutions, large corporates, high net worth individuals and sophisticated investors.

By clicking Proceed, you confirm that you are an Accredited/Institutional Investor as defined under the Act and you agree to the Terms of Use for this website.